VAT Calculator Finland with updated VAT Rates & Exemptions
At present, the Standard Rate of Value-Added-Tax (VAT) in Finland is 24%. An important thing to point out here is that the Standard Rate VAT was notably increased to the current rate of 24% on January 1st, 2014.
Among the Member States of the EU, Finland has, in fact, the 5th Highest VAT Rate. But along with a standard rate, Finland also has reduced VAT rates of 10% and 14%. The reduced rate of 10% is charged on products and services, for instance, Transportation, Books, Rentals, and Pharmaceutical Products.
While the reduced rate of 14% is charged on goods and services, for example, Catering Services, Animal Feed, Restaurant Services, and Food. Some goods and services are tax-free or on which zero-rated VAT is applied.
Vat Calculator Finland
Different Rates of VAT in Finland :
At the present, Finland has a standard VAT rate of 24% along with the reduced rates of 10% and 14%, and also a zero-rated VAT.
The Standard Rate of VAT:
Applies to most products and services. The reduced rate of 10% and 14% are levied on the following goods and services:
Reduced VAT Rate of 10%:
A reduced rate of 10% is charged on several products and services, for instance:
- Medicines
- Books
- Periodicals as well as Newspapers
- Periodicals, Books, and Newspapers that are supplied electronically
- Exercise Services in addition to Sports Services
- Transport and Accommodation Services
- Fees of Television and Broadcasting Operation
- Entertainment Events coupled with Cultural Events
- Sale and Importation of Art Works
- Copyright Royalties that Copyright Organizations Receive
- Public Performer’s Performance Fees
Reduced VAT rate of 14%:
A reduced rate of 14% is charged on several products and services, for example:
- Fodder
- Food
- Catering Services
- Restaurant Services
History of VAT in Finland:
One thing to point out is that in Finish, Value-Added-Tax (VAT) is called ALV (Arvonlisävero), while in Swedish, it’s called MOMS (Mervärdesskatt). Moreover, VAT is collected in Finland by adding it to every sale. Some areas in Finland are outside the scope of VAT, for example, the Åland Islands.
| Standard Rate | Year | Reduced Rate |
| 22% | 1994 | 12% | 6% | 5% |
| 22% | 1995 | 17% | 12 | 6% |
| 22% | 1998 | 17% | 8% |
| 22% | 2009 | 12% | 8% |
| 23% | 2010 | 13% | 9% |
| 23% | 2012 | 13% | 9% |
| 24% | 2013 | 14% | 10% |
| 24% | 2014 | 14% | 10% |
| 24% | 2016 | 14% | 10% |
| 24% | 2018 | 14% | 10% |
| 24% | 2020 | 14% | 10% |
Goods and Services Exempted from VAT in Finland:
While Finland indeed has a very high VAT Rate but there are some Products and Services that are either exempted from VAT or zero-rated in Finland, for instance:
- Healthcare Services
- Medical Services
- Social Services related Businesses
- General Education
- Training Services for Vocabulary
- Basic Arts Education
- University Education
- Financial Services as well as Insurance Services
- Fees that are paid to specific performers
- Copyright Fees
- Real Estate Selling in addition to Real Estate Rental
- Postal Services
- Lottery Events
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FAQs:
Q: Does Finland charge VAT?
VAT is charged in Denmark at the standard rate of 24%. While it is indeed a very high rate, but on the other hand, Finland provides several Tax Exemptions. Furthermore, the reduced rate of 10% or 14% is also applied to several products and services.
Q: Are taxes high in Finland?
Finland is not the most expensive European Country, nor is it the highest-taxed. But it is one of the countries with the highest tax rates in the world. Finland has a 24% indirect Value-Added-Tax (VAT) along with a 20% Corporate Tax and a 53% Individual Marginal Tax.
Q: Is Finland in the EU?
Yes, Finland is indeed a member of the European Union. It got its membership in 1995. The currency of Finland is also Euro.
Q: What is a fair salary in Finland?
In Brief, a person in Finland can live comfortably on $48,000 monthly. It is important to point out here that the average Salaries in Finland are around 3500 Euros.
Q: Is Finland a good place to live in?
Yes, Finland is a good place to live because it is a very safe and protected country.
Here is a list of all our VAT Calculator. It includes most countries in the world.
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